Non-Response To Demands Invalidates Invocation of Mutual Negotiations Clause in Arbitration Agreements: Jammu & Kashmir High Court

The Jammu and Kashmir High Court bench of Chief Justice N. Kotiswar Singh held that if a party didn't respond to the demands and requests made by the other party, it can't invoke the part of the arbitration clause that such disputes and differences shall be an endeavoured to be resolved by mutual negotiations as a condition precedent for invoking the arbitration clause. Brief Facts: Ramtech Software Private Limited (“Petitioner”) was granted a contract for "Modernization of Land...

Interest For Prereference Period And Pendente Lite Interest Can't Be Claimed Under Arbitration Act, 1940: Jammu & Kashmir High Court

The Jammu & Kashmir High Court bench of Justice Sanjay Dhar held that interest for the prereference period as well as the pendente lite interest cannot be claimed under the Arbitration Act, 1940. The bench held that when pre-suit interest, pendente lite interest and future interest has to be awarded on the principal sum adjudged, the interest can be awarded only on the principal sum and it does not provide for payment of interest on interest. Therefore, it held that there is no...

Leasehold Interest In Land Is An Asset Of Company And Is Capable Of Valuation: Jammu & Kashmir High Court

The Jammu & Kashmir High Court has held that leasehold interest in the land is an asset of the company and is capable of valuation.The bench of Justice Tashi Rabstan and Justice Puneet Gupta has upheld the order of the Tribunal in which it was held that leasehold interest is to be included in the value of assets of M/s. Jyoti Private Limited so as to determine the fair market value of shares held by the assessee as well as other shareholders.The assessee/respondent, his wife, and two sons...

Contract To Refer Disputes To Director Of Social Forestry Department Whose Finding Is Final And Binding Constitutes Valid Arbitration Agreement: J&K High Court

The Jammu & Kashmir And Ladakh High Court held that a contract to refer disputes to the Director of the Social Forestry Department, whose findings would be final and binding constituted a valid arbitration agreement. “A perusal of the said Clause 18, would show that it does not specifically mention that the dispute between the parties shall be referred to an arbitrator. What the aforesaid clause mentions is that the dispute shall be referred to the Director, Social Forestry ...

Leasehold Interest In Land Is Asset Of Company, Capable Of Valuation: Jammu & Kashmir And Ladakh High Court

The Jammu & Kashmir and Ladakh High Court has held that leasehold interest in the land is an asset of the company and is capable of valuation. As such, it is to be included in the value of the assets of M/s. Jyoti Private Limited so as to determine the fair market value of shares held by the assessee as well as other shareholders.The bench of Justice Tashi Rabstan and Justice Puneet Gupta, while upholding the ITAT's order, observed that the fair market value is defined under Section 2(22B)...

High Court At Designated 'Venue' Has Jurisdiction, J&K High Court Dismisses S. 11 Application

The Jammu & Kashmir and Ladakh High Court bench comprising Chief Justice N. Kotiswar Singh affirmed that when parties specify a particular location as the venue for arbitration proceedings, that location effectively becomes the seat of arbitration. Consequently, only courts with jurisdiction over that designated venue possess the authority to hear and decide on matters pertaining to the arbitration agreement. Therefore, the bench dismissed an application under Section 11(6) of the...

Arbitration Clause In The Original Contract Would Also Apply To Inseparable Additional Work Carried Out Without Execution Of A Formal Agreement: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has held that the arbitration clause contained in the original contract would also govern any dispute arising out of an additional work carried out without execution of a formal agreement. The bench of Chief Justice N. Kotiswas Singh held that when a contractor, initially tasked with constructing a single-lane bridge, is subsequently directed by the employer to expand the scope to build a two-lane bridge without formalizing a new agreement...

Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn Shawls

The Jammu & Kashmir and Ladakh High Courts have held that jurisdiction in the case of shawls containing prohibited material lies in Delhi, not Jammu & Kashmir, as the seizure took place in Delhi.The bench of Chief Justice N. Kotiswar Singh and Justice M.A. Chowdhary has observed that in the absence of any specific pleadings in the writ petitions as well as memoranda of appeals, it cannot be said that any part of the cause of action had accrued to the appellant-petitioner at Srinagar.One...

English Translated Copy Certified By A Sworn Or Official Translator Is Sufficient Compliance Of Section 47(2) Of The A&C Act: J&K High Court

The High Court of Jammu & Kashmir High Court has held that filing of an English translated copy certified by an official or sworn translator satisfies the requirement of Section 47(2) of the A&C Act which provides that if an award is in a foreign language, a translated copy of the award is to be filed for the purpose of the enforcement of the foreign award and the same has to be certified by the Consular or Diplomatic agent of the award holder’s country. The bench of Justice...

J&K Arbitration And Conciliation Act | Filing Application U/S 5 Not Bar To Referral For Arbitration U/S 8(1): High Court

The Jammu and Kashmir and Ladakh High Court has clarified that filing of the application under Section 5 of the Jammu and Kashmir Arbitration and Conciliation Act, 1997 cannot be construed as a submission of statement of the substance of the dispute within the meaning of Section 8(1) of the Act to create a legal bar in referring the matter to an arbitratorSection 8(1) of the Act prescribes that an application to refer parties to arbitration should be made before submitting the first statement on...

Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court

The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs.The bench of Justice Sanjeev Kumar and Justice Javed Iqbal Wani has observed that the JDA is similar to the Agra Development Authority, constituted under the provisions of the Uttar Pradesh Urban Planning and Development Act, 1973, and NOIDA, established under the Uttar Pradesh...

J&K Roads Development Agency Is Exempted From TDS Deduction On TD Account Interest: Jammu & Kashmir High Court

The Jammu & Kashmir High Court has held that the J&K State Rural Roads Development Agency (JKSRRDA) is exempt from TDS deduction on interest income accrued on Term Deposit Accounts.The bench of Justice Sanjeev Kumar and Justice Puneet Gupta has observed that JKSRRDA is a society registered under the J&K Societies Registration Act, 1998, and is a body wholly financed by the Central Government for implementation of PMGSY and, therefore, exempt from TDS in terms of Notification No. 3489...